In his first public appearance since Amazon relaunched its Dutch webshop in March this year, country manager Roeland Donkers stated that the world’s largest online marketplace is very satisfied with the e-commerce results in the Netherlands so far. By the end of 2020, 300m products will be available on the online marketplace, with an 80% share from selling partners. Without having a fulfilment center inside Holland, Amazon.nl is still able to meet the high delivery standards demanded by Dutch online shoppers, with next day delivery and even same day delivery for some products. Gaining trust from sellers is key for Amazon.nl, the number of Dutch platform sellers already doubled to 5,000 since the launch.
Donkers made these statements in a key note speech and an interview, during the Shopping Today conference in The Netherlands on October 29, organized by the Dutch Association for Digital Commerce, Thuiswinkel.org. He didn’t comment on Amazon’s turnover in Holland. In the Twinkle Top 100, the yearly ranking of the largest online retailers in the Netherlands, Amazon’s turnover with online shoppers in Holland in 2019 (before the relaunch) was estimated at €400m. Holland’s #1 marketplace and overall leading online retailer, bol.com, reached an estimated turnover of €2.2 bn in 2019.
Amazon.nl, that only offered books and e-readers before the relaunch, had a complicated start in the Netherlands, right after the first Covid-19 lock down in March. With 100m products available on the marketplace from the start, Donkers claimed that Amazon now is the largest online marketplace in the Netherlands. 80% comes from selling partners on the platform. By the end of 2020, Donkers said, the product range will be expanded to 300m products. Based on available sales data from Dutch online shoppers on all Amazon marketplaces, the focus lies on consumer electronics, IT, toys and living.
The online shopper in Holland is known for his high expectations regarding fast deliveries by online retailers, Donkers further said. To meet upto these standards, Amazon offers next day delivery for ‘millions of products’ (ordered until 23.59h) and even same day delivery for ‘around one million products’ (ordered before 10 am). Same day delivery is also included in Amazon Prime, which was launched right from the start, at a monthly rate of €2,99. That means that Prime members can use this service on their online purchases at no extra charge (if available for the particular product).
Prime Day, the yearly deal event to celebrate Amazon’s birthday held on 13-14 October, was the most successful business day for Amazon.nl sofar.
Donkers also declared that the number of third party sellers from Holland and Belgium doubled to 5,000 since the launch in March. Over 500 of them make over €100k each in sales on the platform. By the end of 2020, Amazon.nl is planning to have a staff of 450 people in their offices in Amsterdam and The Hague.
In the interview by Wijnand Jongen, CEO of Thuiswinkel.org, Donkers said that Amazon.nl will launch a huge media campaign in Q4 2020 to create more brand awareness among Dutch online consumers. He also said there is no need for an Amazon warehouse in the Netherlands, because Amazon has distribution centers in Germany, close to the border with Holland. From there, the Dutch online retail market can be serviced, including same day delivery. Jongen’s question why it took Amazon so long to enter the ecommerce market in Holland, remained unanswered.
On the hot topic of Amazon using data from selling partners to optimize their own product range, Donkers stated that data from selling partners are not shared internally or used in any way. He claimed that Amazon’s main goal is to gain trust from selling partners and that Amazon is dedicated to creating a level playing field for selling partners.
An interesting statement in the light of the two investigations announced by the European Commission this week. Firstly, in the Commission’s view, Amazon ‘systematically trusts on non-public business data of independent sellers who sell on its marketplace, to the benefit of its own retail business, which directly competes with the third party sellers’. In addition, the Commission has opened a second investigation into the preferential treatment of Amazon’s own retail offers and those of sellers that use Amazon’s logistics and delivery services. This includes the criteria to select the winner of the Buy Box as well as giving marketplace sellers access to the growing number of highly interesting Amazon Prime users. The investigations cover the entire European Economic Area, with the exception of Italy, that has already taken similar action itself.
Author: Ed Hensen
For more detailed information on the B2C ecommerce market in the Netherlands, or strategic or operational support for your cross-border activities to the Netherlands, please contact ECommerce in Holland Consultants on firstname.lastname@example.org or check out our website www.ecommerceinholland.com